PITTSBURGH, April 16 /PRNewswire-FirstCall/ --
Bayer Corporation (NYSE: BAY) announced today that it has reached a settlement
with the U.S. Department of Justice, acting through the U.S. Attorney's Office
for Massachusetts, the Office of the Inspector General of the U.S. Department
of Health and Human Services and the states. This settlement resolves a long-
standing investigation of the company's marketing practices, which Bayer
believed were responsible and conducted in good faith.
Under the agreement, Bayer will pay a total of approximately $257 million.
In December 2002, Bayer announced that it set up a reserve for the entire
settlement amount and subsequently announced that it took a charge for this
amount in the fourth quarter of 2002. Therefore, there will be no impact on
the company's 2003 results. Approximately $250 million will be applied toward
settling the civil portion of the agreement. The amount was largely
determined based upon the sales volume of the pharmaceuticals involved.
Under the agreement, Bayer has agreed to plead guilty to a single count
under the Prescription Drug Marketing Act and pay approximately $5.5 million
in penalties. This portion of the agreement is subject to approval by the
District Court.
Bayer has cooperated fully with the government throughout its
investigation and that it is pleased that this resolution, about issues that
took place in the mid-to-late 90s, has been satisfactorily reached. The
company said that the settlement should not affect Bayer's ongoing business
with the U.S. Government.
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. These
factors include those discussed in our public reports filed with the Frankfurt
Stock Exchange and with the U.S. Securities and Exchange Commission (including
our Form 20-F). The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or
developments.
SOURCE Bayer Corporation
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Related links:
http://www.bayerus.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/092575.html
CONTACT:
Mark A. Ryan of Bayer Corporation,
+1-412-777-5666, mark-a.ryan.b@bayer.com
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